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Andean Group - May 2015 (ISSN 1741-4466)
POLITICS & ECONOMICS: Congressional populism irks Humala govt.
Peru’s opposition-controlled national congress has approved a new bill making permanent temporary tax breaks introduced six years ago for employees. The move may be popular with workers, but it has upset the government led by President Ollanta Humala. Government officials argue that it will lead to shortfalls in financing for both the national pension system (SNP) and the social security health service (Essalud). There are also concerns say that the bill will create financial problems for the government ahead of next year’s general elections.
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